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RBI Allows Offline Digitial Payments Up To Rs 200 Per Transaction
Writer: Anuksha Bharat
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India, 4 Jan 2022 10:55 AM GMT | Updated 4 Jan 2022 10:58 AM GMT
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While he is a massive sports fanatic, his interest also lies in mainstream news and nitpicking trending and less talked about everyday issues.
According to reports, the framework also implemented the feedback received from the pilot experiments on offline transactions conducted at different parts of the country from September 2020 to June 2021.
The Reserve Bank of India (RBI) released a new framework on January 3 that allows offline payments up to Rs 200 per transaction, which is subject to an overall limit of Rs 2000. This was done to encourage digital transactions in rural and semi-urban areas.
An offline digital payment refers to a transaction that doesn't need an internet or telecom connection. As per offline mode, payments can be made face-to-face (proximity mode) with any channels or instruments like cards, wallets, mobile phones, etc. This kind of transaction will not need any additional factor of authentication (AFA), said the Reserve Bank of India. It also mentioned that as the transactions are offline, alerts (by way of SMS or e-mail) will be sent to the customer after a lag of time.
"Transactions are subject to a limit of Rs. 200 per transaction and an overall limit of Rs. 2000 for all transactions until the balance in the account is replenished. Balance replenishment can only occur in an online mode," said the Framework for Facilitating Small Value Digital Payments in Offline Mode.
According to the report of The Indian Express, the framework also implemented the feedback received from the pilot experiments on offline transactions conducted at different parts of the country from September 2020 to June 2021.
The New Payment Method
"The new framework is applicable with immediate effect. Offline transactions are expected to give a push to digital transactions in areas with poor or weak internet or telecom connectivity, particularly in semi-urban and rural areas,", said RBI. It also added that the offline mode of payment can be activated after taking consent from the customer. This way, customers will enjoy the protection given to them under the provisions of circulars limiting customer liability. They will have a way out to the Reserve Bank – Integrated Ombudsman Scheme for grievance redress.
As per the report of The Print, the acquirer should ensure all the liabilities that arise from technical security issues at the merchant's end. The RBI also said that offline payments would come under the limited customer liability circulars. The Reserve Bank has also asked all the authorised payment system operators (PSOs) and payment participants (PSPs) – issuers and acquirers (banks and non-banks) to make sure that they are well-versed with the instructions.
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